Microchip Technology (NASDAQ:MCHP) Updates Q1 2025 Earnings Guidance

Microchip Technology (NASDAQ:MCHP) issued an update on its first quarter 2025 earnings guidance on Monday morning. The company provided EPS guidance of 0.480-0.560 for the period, compared to the consensus EPS estimate of 0.580. The company issued revenue guidance of $1.2 billion-$1.3 billion, compared to the consensus revenue estimate of $1.3 billion. Microchip Technology also updated its Q1 guidance to $0.48-0.56 EPS.

Microchip Technology Price Performance

Shares of MCHP stock traded up $2.40 on Monday, hitting $93.76. 7,033,471 shares of the stock traded hands, compared to its average volume of 5,622,562. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.98 and a quick ratio of 0.58. Microchip Technology has a 52 week low of $68.75 and a 52 week high of $94.63. The firm has a 50 day simple moving average of $88.05 and a two-hundred day simple moving average of $85.13. The firm has a market cap of $50.67 billion, a price-to-earnings ratio of 21.35, a PEG ratio of 2.79 and a beta of 1.60.

Microchip Technology (NASDAQ:MCHP) last announced its quarterly earnings data on Monday, May 6th. The semiconductor company reported $0.57 EPS for the quarter, meeting the consensus estimate of $0.57. Microchip Technology had a return on equity of 45.59% and a net margin of 27.59%. The business had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the previous year, the business earned $1.56 earnings per share. The business’s revenue was down 40.6% on a year-over-year basis. As a group, equities research analysts predict that Microchip Technology will post 4.64 earnings per share for the current fiscal year.

Microchip Technology Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 5th. Stockholders of record on Wednesday, May 22nd will be issued a $0.452 dividend. This represents a $1.81 annualized dividend and a dividend yield of 1.93%. This is an increase from Microchip Technology’s previous quarterly dividend of $0.45. Microchip Technology’s payout ratio is 42.06%.

Analyst Upgrades and Downgrades

Several research firms have commented on MCHP. Needham & Company LLC increased their price objective on shares of Microchip Technology from $85.00 to $90.00 and gave the company a buy rating in a report on Friday, February 2nd. TD Cowen boosted their price target on shares of Microchip Technology from $75.00 to $80.00 and gave the stock a market perform rating in a research report on Friday, February 2nd. Wolfe Research upgraded shares of Microchip Technology from a peer perform rating to an outperform rating and set a $105.00 price objective for the company in a research report on Thursday, January 18th. Rosenblatt Securities restated a buy rating and issued a $100.00 target price on shares of Microchip Technology in a report on Tuesday, January 30th. Finally, Truist Financial lowered their price target on shares of Microchip Technology from $97.00 to $93.00 and set a buy rating for the company in a report on Tuesday, January 9th. Six investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of Moderate Buy and a consensus price target of $92.75.

Insider Buying and Selling at Microchip Technology

In other news, Director Karlton D. Johnson sold 370 shares of the business’s stock in a transaction dated Tuesday, February 6th. The shares were sold at an average price of $84.00, for a total transaction of $31,080.00. Following the completion of the sale, the director now owns 1,789 shares of the company’s stock, valued at $150,276. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director Karlton D. Johnson sold 370 shares of the business’s stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $84.00, for a total transaction of $31,080.00. Following the completion of the sale, the director now directly owns 1,789 shares in the company, valued at $150,276. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO James Eric Bjornholt sold 1,970 shares of the stock in a transaction on Friday, February 23rd. The shares were sold at an average price of $83.90, for a total value of $165,283.00. Following the completion of the transaction, the chief financial officer now directly owns 32,893 shares of the company’s stock, valued at $2,759,722.70. The disclosure for this sale can be found here. Insiders own 2.07% of the company’s stock.

About Microchip Technology

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.